Metro Facts in Focus Policy Backgrounder #1: Moving Goods. through Marine Ports in Metro Vancouver

Transcription

1 Metro Facts in Focus Policy Backgrounder #1: Moving Goods through Marine Ports in Metro Vancouver

2 Introduction In 2012, 124 million tonnes of goods moved through marine ports in the Metro Vancouver the most by any port region in Canada and along the west coast of North America. The outlook for trade is for continued growth. The growth is driven largely by international demand for British Columbian and western Canadian natural resources, as well as domestic demand for consumer goods. Through the combined efforts of both the public and private sectors, billions of dollars have been spent in this region to expand port and transportation capacity. Additional future investments have also been identified. But emerging proposals to increase infrastructure capacity in order to bring petroleum and coal to Asian markets, and to accommodate ever increasing container imports from Asia are engendering considerable discussion about the perceived and real trade-offs between economic prosperity, livability, and the environment. Integrating goods movement into regional planning and policymaking is fundamental to reconciling these objectives and identifying synergistic solutions. A regional dialogue must take place now to help shape informed decisions about the implementation of the Regional Growth Strategy, goods movement infrastructure investments, regulations, policies, and other key considerations and strategic issues. The series of policy backgrounders on goods movement is being prepared to support such a dialogue. Policy Backgrounder #1 provides important background information about goods movement in the region. Getting the facts on the table is the first step in helping to foster an informed discussion. Using information from publicly available sources, this booklet provides information about the type of goods that are handled by marine terminals in the region, the historical levels of throughput, and projections for the future. Policy Backgrounder #1 also shows some of the major infrastructure investments that have been committed or completed to support goods movement. The Metro Facts in Focus Series is designed to promote a broad understanding of the key issues and opportunities that frame Metro Vancouver s implementation of the Regional Growth Strategy and its mandate for delivering services and solutions for a livable region. Metro Vancouver is a political body and corporate entity operating under provincial legislation as a regional district and greater boards that deliver regional services, policy and political leadership on behalf of 24 local authorities. These local authorities comprise 22 municipalities, one electoral area, and one treaty First Nation. Providing timely research and analysis of regional issues is an important service by Metro Vancouver. 2 Moving Goods through Marine Ports in Metropolitan Vancouver

3 Contents A. Historic Goods Movement Throughput... 4 B. The Region s Place in Goods Movement... 6 C. Projections for Goods Movement Throughput D. Infrastructure to Support Goods Movement E. Towards a Regional Dialogue Moving Goods through Marine Ports in Metropolitan Vancouver 3

4 A. Historical Goods Movement Throughput A diverse mix of goods are moved through 28 marine terminals in Metro Vancouver, including commodities exported to Asia and consumer products destined for retailers in Metro Vancouver, elsewhere in Canada, and the United States. Bulk and breakbulk goods comprise close to 80% of all cargo handled by the ports by tonnage, followed by containers, and lastly automobile shipments. Overall, goods throughput by tonnage has rebounded close to pre-recession levels. In 2012, about 78 percent of all goods, by tonnage, were foreign-based (the destination or origin of the good was a foreign country) PORT METRO VANCOUVER CARGO PROFILE (2012, tonnage) % 0.3% PORT METRO VANCOUVER TOTAL GOODS THROUGHPUT (million tonnes) % 13.5% Auto Break-bulk Bulk Container Moving Goods through Marine Ports in Metropolitan Vancouver

5 Examples of Bulk Goods: Oil, wheat, durum, canola, barley, sea salt, caustic soda, wood pellets, fertilizers, potash, coal Examples of Breakbulk Goods: logs, lumber, steel, machinery PORT METRO VANCOUVER BULK & BREAKBULK THROUGHPUT (million tonnes) BULK BREAKBULK Container throughput is commonly measured in twenty-foot equivalent units (TEU). Most ocean-going containers are 40-ft in length, which is equivalent to 2 TEU PORT METRO VANCOUVER CONTAINER THROUGHPUT (million twenty-foot equivalent units, TEU) PORT METRO VANCOUVER AUTOMOBILE SHIPMENTS (thousand tonnes) Moving Goods through Marine Ports in Metropolitan Vancouver 5

6 B. The Region s Place in Goods Movement The Metro Vancouver region is situated in an important location in the global movement of goods. This is reflected in the number of terminals in the region as well as the volume of goods they collectively handle. The region s port authority, Port Metro Vancouver, oversees two automobile terminals, 22 bulk and breakbulk terminals, and 4 container terminals. By tonnage, the region is the largest port in Canada and one of the largest ports in North America. The region s trade is supported by a network of roads, railways, and container transloading facilities. Bulk, Breakbulk, and Automobile Terminals 1Cascadia (grains) 9 Pacific Elevators (grains) 17 2Fibreco (woodchips) 10 Pacific Coast Terminal (sulphur, chemicals) 3 Ioco (petroleum) 11 Richardson International Terminal (grains) 4Univar (chemicals) 12Petro Canada (petroleum) 5 Lynnterm (East Gate) (forest products & steel) 6 Lynnterm (West Gate) (forest products & steel) 7Neptune Terminals (coal, potash, grains) 8Canexus (chemicals) Container Terminals 13Cargill Terminal (grains) Shellburn (petroleum) Stanovan (petroleum) Rogers Sugar (sugar) Centerm 27 Fraser Surrey Docks Alliance Grain Terminals (grains) Vancouver Wharves (chemicals) Kinder Morgan Westridge (petroleum) Westshore (coal) Wallenius Wilhelmsen Logistics (automobile) Fraser Wharves (automobile) West Coast Reduction (fats, oils, waxes) Annacis Rail Marine Terminal (various) 26 Vanterm 28 Deltaport 6 Moving Goods through Marine Ports in Metropolitan Vancouver

7 LEGEND Bulk, Breakbulk & Automobiles Containers 22 Railways Highways & Major Roads Moving Goods through Marine Ports in Metropolitan Vancouver 7 CANADA-USA BORDER

8 The region facilitates the nation s critical economic linkages with Asia, the United States, Mexico, and South America. China is the top origin of imports, followed by South Korea and the United States. The top destination for outbound goods is China, followed by Japan and South Korea. Thailand South Korea Japan China Taiwan Hong Kong Malaysia Singapore Indonesia Canada United States Mexico Brazil China South Korea United States Taiwan Japan Mexico TOP TRADING NATIONS (Inbound, millions of tonnes) Hong Kong Chile Thailand Singapore Malaysia Moving Goods through Marine Ports in Metropolitan Vancouver

9 China Japan South Korea United States Chile Indonesia India Brazil Taiwan TOP TRADING NATIONS (Outbound, millions of tonnes) South Korea Japan China Taiwan Hong Kong Thailand Malaysia Singapore Indonesia Canada United States Mexico Chile Brazil Moving Goods through Marine Ports in Metropolitan Vancouver 9

10 Prince Rupert CANADA Metro Vancouver Seattle/Tacoma Portland Ports on the west coast of North America are important globally. In 2011, ports on the west coast of Canada and the United States handled 51% of the 46 million TEU throughput in North America. By comparison, Atlantic and Gulf Coast container ports handled 44%, and Mexican Pacific ports handled a much smaller 5% of container throughput. Along the west coast of Canada and the United States, shippers have options. Los Angeles and Long Beach in California dominate the container market by moving 60% of all west coast container port throughput. Metro Vancouver, with an 11.6% share of Canada/United States west coast container traffic, is more in line with Oakland, California and Seattle/Tacoma, Washington. Metro Vancouver is the dominant west coast port for non-containerized (bulk and breakbulk) goods. CONTAINER THROUGHPUT MAJOR WEST COAST PORTS (2012, million TEU) NON-CONTAINERIZED THROUGHPUT MAJOR WEST COAST PORTS (2012, million tonnes) Oakland UNITED STATES Los Angeles Long Beach Metro Vancouver Oakland Seattle Metro Vancouver Prince Rupert Portland Los Angeles/ Long Beach MEXICO Tacoma Prince Rupert Portland Tacoma Seattle Moving Goods through Marine Ports in Metropolitan Vancouver

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12 C. Projections for Goods Movement Throughput The demand for trade is a function of international, national, and provincial/state economies. Projections from various sources provide an indication of the magnitude of growth in goods movement. These projections have been important in influencing public and private investment decisions. 1. The Province of British Columbia s Goods Movement Throughput Projections The Province of British Columbia s Pacific Gateway Transportation Strategy sets out new province-wide projections for the volume of commodities to be traded through ports in the province. Most of these projections are contingent on market conditions and the expansion of terminal capacities. Commodity/Mode Projected Growth for British Columbia Ports Coal +150% (56 million tonnes) +24 million tonnes Metals and Minerals +310% (5 million tonnes) +3 million tonnes Liquefied Natural Gas +18 million tonnes +18 million tonnes Potash +340% (19 million tonnes) +13 million tonnes Forest Products +100% (4 million tonnes) +2 million tonnes Additional Port or Processing Capacity Required to Meet 2020 Projections Grain +5% (1 million tonne) No gap; existing capacity sufficient Containers +105% (3 million TEUs) No gap; planned capacity expansion sufficient 12 Moving Goods through Marine Ports in Metropolitan Vancouver

13 2. Port Metro Vancouver s Container Throughput Projections The last two decades have seen the relocation of manufacturing from North America to Asia, and the containerization of imported consumer and household goods into North America. Economic growth in British Columbia and central and eastern Canada have driven the majority of the demand for import containers. The containerization of bulk and breakbulk goods for exports is also increasing. The growth of Asian economies is driving export demand both for commodities (e.g. forest products, metals, and energy) and to directly satisfy consumer demand (e.g. specialty crops, meat, fish, and poultry). Port Metro Vancouver has commissioned the development of projections for container throughput. These projections provide low, medium, and high throughput scenarios. To realize even the low throughput scenario, the container capacities in the region would have to be expanded significantly. Anticipating the need for expanded capacity, the Province, Port Metro Vancouver, Port of Prince Rupert, and the private sector are actively planning and building new infrastructure PORT METRO VANCOUVER CONTAINER THROUGHPUT ACTUALS AND UNCONSTRAINED PROJECTION (million TEUs) High Medium Low 2.0 Actuals Moving Goods through Marine Ports in Metropolitan Vancouver 13

14 D. Infrastructure to Support Goods Movement In the past 10 years, the combined efforts of both the public (federal and provincial governments, TransLink, Port Metro Vancouver, and local governments) and private sectors have resulted in significant infrastructure investments in the region to support goods movement by rail and trucks. This approach is likely to continue. Rail and trucks are the dominant means to move goods into and out of the region today. Rail transport is currently the most economically efficient means for moving most bulk and breakbulk goods to marine terminals. About two-thirds of loaded import containers are carried by rail, and the remainder on trucks. Conversely, about two-thirds of all loaded export containers arrive at container terminals by trucks. Barge transport is not currently a major means of transporting goods in the region. Some of the key projects are shown below (the project locations and extents have been generalized). Completed Road/Rail Projects (Year of Completion) Road/Rail Projects in Progress Road Projects Under Consideration 1 Regional Transportation Management Centre (2013) 17 South Fraser Perimeter Road 32 Pattullo Bridge Strategic Review Study 2 Port Mann Bridge/Hwy 1 (2013) 18 Tannery Road and Scott Road Intersection 33 Highway 91 and 72nd St Interchange Upgrade 3 Brooksbank Ave Underpass (2012) 19 Roberts Bank Rail Corridor Rd/Rail Grade Marine Terminal Projects (status) Separations (Delta projects completed) 4 Lynn Creek Rail Bridge (2011) 20 Neptune/Cargill Grade Separation 34 Deltaport Terminal, Road and Rail Improvement Project (in progress) 5 Nelson Road/Highway 91 Interchange (2011) 21 Low Level Road Re-Alignment 35 Neptune Terminals Coal Handling Expansion (in progress) 6 Nordel Way Intersection Upgrades (2011) 22 Philip Ave Overpass Project 36 Roberts Bank Terminal 2 Project (planning) Ave Widening between 152nd St and Hwy 15 (2011) Moving Goods through Marine Ports in Metropolitan Vancouver Western Low Level Route Extension to Marine Drive (on hold pending additional funding) 37 Westridge Marine Terminal Expansion (planning)) 8 Chester Road Intersection (2010) 24 Powell Street Grade Separation 38 Fraser Surrey Docks Direct Transfer Coal Facility (planning) 9 Coast Meridian Overpass (2010) 25 Stewart Street Elevated Structure 39 YVR Jet Fuel Marine Terminal and Receiving Facility (on hold pending Provincial environmental review) 10 Pitt River Bridge and Mary Hill Interchange (2009) Golden Ears Bridge (2009) Highway 15 Widening (2008) Highway 91A Interchange Upgrades (2009) Highway 10 Widening between 120 St and Hwy 15 (2008) 15 8th Ave/Hwy 99, 8th Ave, and 8th Ave/Hwy 15 Upgrades (2006) 16 Various Upgrades to Land Border Crossings ( ) No. 6 Road Widening between Wireless Way and Highway 91 Westminster Highway Widening (Phase 2, Nelson to McMillan) Nelson Road Widening (Blundell to Westminster Highway Highway 99 and 16th Avenue Interchange Eastbound Truck Climbing Lane on Highway 1 between 232nd and 264th Streets Bridge replacing the George Massey Tunnel 40 Southern Railway of BC Rail Barge Ramp (completed 2010) 41 Deltaport Third Berth Project (completed 2010)

15 LEGEND Infrastructure Projects Railways Highways & Major Roads CANADA-USA BORDER Moving Goods through Marine Ports in Metropolitan Vancouver 15

16 E. Towards a Regional Dialogue Metro Vancouver is unique for having achieved broad-based agreement on land use and environment objectives through the Regional Growth Strategy and other plans. But broad-based agreement among the levels of government for goods movement remains elusive. The benefits of trade are not in question trade enhances the standard of living in the region and the rest of the nation. The central concern is reconciling the desire to accommodate trade and facilitate the movement of goods with the region s commitments to livability and environmental objectives. A regional dialogue on goods movement is urgently needed to help reconcile different perspectives and to work towards common goals. This dialogue must be supported by evidence-based analysis, and not by public relations rhetoric. Major investment decisions, such as expanding marine terminals, highways, and watercrossings, are being made to accommodate projected goods movement throughput. These decisions could have important implications for land use, land demand and prices, environmental quality, and human health and safety. Integrating goods movement into regional planning and policymaking is crucial to reconciling these perspectives and identifying synergistic solutions. To initiate a regional dialogue, some of the key issues have been identified. 16 Moving Goods through Marine Ports in Metropolitan Vancouver

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18 ISSUE #1: Protecting Human Health and Safety, and the Environment The private sector wants to expand infrastructure capacity within the region in order to increase the export of resource-based commodities, such as petroleum and coal. Serious concerns have been made by stakeholders and communities. These concerns range from the potential effects on human health and safety, and environmental quality for the communities hosting these facilities and activities, to the role that communities should play in helping to facilitate the burning of fossil fuels abroad. 1. Are current safeguards for the movement of goods, in particular dangerous goods, sufficient and appropriate for the protection of human health and safety, and the environment in highly urbanized areas such as Metro Vancouver? 2. Are regional and cumulative human health and environmental criteria integrated into projectspecific planning decisions? 3. What is the role of communities, if any, in influencing the type of goods, and the associated impacts on global climate change, to be transported through or handled within their jurisdictions? 18 Moving Goods through Marine Ports in Metropolitan Vancouver

19 ISSUE #2: Optimizing Efficiencies in the Goods Movement System There may be practical ways to optimize the current goods movement system to improve both efficiency and effectiveness. These opportunities may reduce the urgency and the scope of current proposals to expand marine terminals, highways, and watercrossings. 1. How much more throughput is achievable by expanding the hours of goods movement operations (e.g. 24 hours) or by investing in new technology to manage the logistics of goods movement? 2. How much more throughput can existing rail capacity accommodate? 3. What role could transportation demand management measures, such as facility tolling, play in expanded highway corridors to alleviate congestion for goods movement and still manage induced demand from single-occupant vehicle trips? 4. Considering the land constraints in the region, are container-handling facilities optimally arranged in the region? 5. What is the appropriate role of local governments in addressing goods movement efficiencies on roads, rail, and marine? Moving Goods through Marine Ports in Metropolitan Vancouver 19

20 ISSUE #3: Coordinating Among Port Authorities Port Metro Vancouver and the Port of Prince Rupert have statutory oversight for the major deepsea marine ports in British Columbia today. But the municipalities and regions hosting these two port authorities are vastly different in terms of the urban density, availability of land for port-related development, road and rail infrastructure, and community acceptance of the local economic value associated with increases in rail, truck, and marine traffic. Some have argued for a different balance in goods movement throughput along the west coast. 1. What incentives are in place for Port Metro Vancouver, Port of Prince Rupert, and other ports on the west coast of British Columbia to cooperate? 2. What efforts are underway to investigate the feasibility and efficiency gains/losses of out-of-region container terminals, such as those proposed by Port Alberni and Ashcroft, and their potential to alleviate goods movement traffic on Metro Vancouver roads and pressures to convert agricultural lands to port-related industrial lands? 3. What are the benefits, costs, and market feasibility for expanding short-sea shipping? 4. What is the role of the federal government in coordinating goods movement traffic through ports on the west coast of British Columbia? 20 Moving Goods through Marine Ports in Metropolitan Vancouver

21 ISSUE #4: Responding to Uncertainty in Market Demand Projections In the past 10 years, the federal and provincial governments have made major infrastructure investments to increase the region s capacity for handling goods. These investment decisions were based in part on the expectation for the continued rapid growth of Asian economies, and stable trade relationships, such as between Canada and the United States. Some of these assumptions may need to be reconsidered. In the case of China, which set off the resource boom with its heavy industries driving demand for commodities, economists are speculating that its economy will unlikely grow at 10% annually as it had done so in the past two decades, and could settle to 6% by 2020 (however, other emerging Asian economies may compensate for slower growth in trade with China). In the case of the United States, there is pending legislation to impose a fee on all containers arriving in the United States regardless of whether they landed in an American port or passed through Canada or Mexico first. 1. How responsive and adaptive are proponents of infrastructure expansion to changes in market conditions? 2. What are the economic losses if the infrastructure planned and built today is oversized or undersized relative to the actual future demand levels? 3. What are the employment, taxation, and broader economic benefits and costs to Metro Vancouver, British Columbia, and Canada if marine terminal capacity expansion does not materialize as scheduled to capture the projected demand? Moving Goods through Marine Ports in Metropolitan Vancouver 21

22 Sources The Pacific Gateway Transportation Strategy , Province of British Columbia, Available online at: Statistics Overview Report, Port Metro Vancouver, Available online at: Preliminary Container Traffic Projections for Port Metro Vancouver: 2011 to 2030, Container Capacity Improvement Program (CCIP) Project Definition Report (PDR) Phase Executive Summary, WorleyParsons Canada, May Available online at: Rev0_ pdf?sfvrsn=0 Port Metro Vancouver Container Forecasts, Ocean Shipping Consultants, August Available online at: robertsbankterminal2.com/wp-content/uploads/port-metro-vancouver-container-forecasts-ocean-shipping-consultants-2012.pdf Port Metro Vancouver Container Forecasts, Ocean Shipping Consultants, July Available online at: Consultants-July pdf Prince Rupert Container Terminal, Prince Rupert Port Authority. Available online at: Canada s Gateways: Supply Chain Performance Monitoring Initiatives, Louis-Paul Tardif and Mimi Sukhdeo, Transport Canada. The 5th Asian Logistics Roundtable and Conference (Vancouver), June 14, Available online at: China s third-quarter GDP growth fastest this year, but outlook dim, Reuters, October 18, Retrieved on October 18, 2013: China s Economic Growth Outlook Grim: Barclays Sees Economy Growing by Less than 6% by 2020, International Business Times, September 18, Retrieved on November 6, 2013: Goldman Strategist s 6% Call for China Growth, The Wall Street Journal, June 13, Retrieved on August 25, 2013: This booklet was produced with the research assistance of Colledge Transportation Consulting Inc. 22 Moving Goods through Marine Ports in Metropolitan Vancouver

23 Metro Vancouver Village of Anmore Electoral Area A City of North Vancouver City of Surrey Village of Belcarra City of Langley District of North Vancouver Tsawwassen First Nation Bowen Island Municipality Township of Langley City of Pitt Meadows City of Vancouver City of Burnaby Village of Lions Bay City of Port Coquitlam District of West Vancouver City of Coquitlam District of Maple Ridge City of Port Moody City of White Rock Corporation of Delta City of New Westminster City of Richmond City of Abbotsford (park purposes only) Moving Goods through Marine Ports in Metropolitan Vancouver 23

24 Metro Vancouver 4330 Kingsway Burnaby, BC V5H 4G8